If the firm’s representative cannot tell you in let’s say one minute why they are different from their competitors, then keep looking.

2) Question: What is the firm’s philosophy in advising and working with clients?

You want to hear more about assisting clients and less about doing it for them. Also, if a firm’s mission in life revolves solely around making money, then you had better run very fast and very far.

3) Question: When we work together, what is your first step?

Is the firm’s representative willing to listen to your problems and fully understand them, or does s/he jump to conclusion and suggest a grandiose, multi-year, multimillion-dollar solution too quickly? Strategic (big picture thinking) firms will go any length to understand your challenge and what you have done to solve it. They will do lots of “skunk work” to understand your problem. Listen to them very carefully. Tactical (one-trick ponies and implementers) firms will quickly jump to solutions, and try to shove it down your throat.

4) Question: Question: What guarantees do you offer?

If someone gives you unconditional satisfaction guarantee, then run. Nobody can guarantee anybody’s satisfaction. That is subjective. Guaranteeing it is just unethical. The same goes for guaranteeing results. Since the final decision is always yours, that is, you are in charge of the project, only you can take responsibility for the end results.

5) Question: Question: How do you set your fees?

Be very cautious when a firm wants to quote you time-based, Per Diem fees. You may end up giving the firm a blank cheque, which they can fill in to their hearts’ contents. Many firms actually reward partners who put in the highest amount of billable hours on a project. That goes against your objectives. You want to receive one fee plus expenses. For incompetent firms it is a very convenient shield to hide behind Per Diem rates. They have basically no incentive to complete the project on time and on budget. Be afraid, be very afraid of Per Diem based firms.

6) Question: How can I maintain the improvement after we have completed the project?

You want to make sure that after your advisor is gone, you can maintain the improvement without re-hiring the firm and paying over and over again. Many firms try to “complete” their projects in such a way, that clients have to re-hire them regularly. Make sure you get a clear answer to this question and before getting into any engagement, set up a scope for knowledge transfer.

7) Question: What is your process to prepare proposals?

What you want is a representative of a firm who listens to you extensively and willing to meet you at your location to experience your existing situation. Keep away from firms that are willing to give your quotes over the phone after a five-minute phone discussion. Proposals, or as I call them Collaboration Agreements should discuss projected bottom-line results and time frames, not merely list of tasks. Also, please note that the proposal is the first stage of the project. It is not a sales tool, but a template for implementation. Hint 1: By the time you propose marriage to your would fiancé/e, you are pretty committed to each other, and none of you is “shopping around” for a better deal. Hint 2: Good consulting gigs, just like good marriages, are based on engagement. If you create a bidding war, you end up with a prostitute consultant: I do anything for money.

There is always risk involved when hiring consultants, but there are ways of reducing clients’ risks.

About the Author
Tom 'Bald Dog' Varjan, Vancouver
tvarjan@yahoo.co.uk
www.di-squad.com
Tom "Bald Dog" Varjan of Dynamic Innovations Squad helps professional service businesses to build high trust client relationships in which they can deliver higher value at higher fees, using less of their time and effort. You can request his e-booklet “Why Most Service Professionals Consistently and Persistently Undercharge for Their Services” by emailing booklet@di-squad.com. Reach him at www.di-squad.com.